by Nicolò Florenzio (Research Associate, E-axes Forum)
Climate stress tests are a new prudential tool that central banks and supervisors all around the world are developing in order to assess climate systemic risk in the financial system. Even though the implementation of these resource-demanding instruments raises challenges for financial institutions, they are useful to inform other macroprudential policies.
This is a brief based on a series of webinars E-Axes Forum organized on November 3rd, 2022.
“Climate stress tests: Lessons learned and way forward” – Julia Trabert, European Central Bank, Tan Schelling, Swiss National Bank and Cassandra Archer, Bank of England
